Global stocks fell Monday, with Wall Street and European equities experiencing losses. This downturn follows renewed uncertainty over U.S. trade policy after President Donald Trump announced new global tariffs.
Following a Supreme Court ruling that struck down previous emergency tariffs, the President initially set a 10% rate on all U.S. imports, later raising it to 15%. These new tariffs are enacted under Section 122 of the Trade Act of 1974.
The Dow Jones Industrial Average dropped 1.44%, the S&P 500 declined 1%, and the Nasdaq Composite fell 1.2%. Market strategists noted that the shift to a 15% rate contributed to the market's uncertainty, reversing much of Friday's gains.
This week, U.S. stock markets will also face pressure from Nvidia's earnings report. The chip designer's significant weighting in the S&P 500 index makes its performance a key indicator.
In Europe, the pan-European STOXX 600 index decreased by 0.2%. Germany's DAX lost 0.75%, while Britain's FTSE 100 remained flat. MSCI's global stock gauge fell 0.63%.
In contrast, gold prices climbed 1.9% to $5,200 per ounce, and silver rose 3% to approximately $87.36 per ounce.
U.S. Treasury yields also trended lower. The yield on benchmark 10-year notes fell 2.7 basis points to 4.056%, and the 2-year note yield decreased by 0.8 basis points to 3.472%.
The exact implementation details of the new tariffs, including potential exclusions and the application rate across countries, remain unclear.
The U.S. dollar weakened against the euro, Japanese yen, and Swiss franc. The dollar fell 0.41% against the Japanese yen and 0.27% against the Swiss franc.
Brent crude oil prices increased by 0.88% to $72.35 a barrel, continuing gains from last week amid escalating U.S.-Iran tensions. Further diplomatic talks are scheduled for Thursday.